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The knowledge of the general public takes place in Europe. The US dollar is losing land there. Since the beginning of the year, companies and foreign funds have required regulations in local currency and have revealed a strategic fracture at the Center for Continental Financing. This movement, by far be unofficial, is in accordance with the ambitions of bric, determined to erode the hegemony of the green. It is constantly the architecture of international stock exchanges, which is led by an developing alliance in the search for economic sovereignty.
In short
- The US dollar loses fields in Europe where companies now require transactions in local currencies.
- European banks and financial institutions are getting more and more requests for the circumvention of the dollar in regulations.
- This development is part of the BRICS strategy to support local currencies on the world scene.
- Financial technologies and increase in liquidity are now facilitated by direct regulations between non -American currencies.
A new agreement on European stock exchanges
Applications of European customers to rent local currencies rather than dollars.
According to Luxembourg’s times, several months have faced several European banks, brokers and financial entities for unique development in the way their international customers want to carry out their transactions.
Foreign institutional funds will expressly request the US dollar in regulations for the first time. European financial institutions receive applications for transactions, including coverage (hedges) that bypass the US dollar.
These applications relate to the direct use of local currencies such as Chinese Juan, Dirham Emirati, Hong Kong dollar or even euro. The phenomenon, albeit discreet, is described as a significant tendency of the actors in question.
This questioning of the key role of the dollar in international streams is observed specifically in several surgical cases. For example, when a Japanese company transferred money to a fund based in the Philippines through the European Bank, the classic system first included turning into dollars before the new change to Peso Philippin.
Now customers demand that this transitional step be deleted. The requirements mainly apply to:
- Leaving the dollar as a currency in international transfers;
- Direct treatment in local currencies and transcontinental operations;
- Tax and regulatory optimization thanks to simplification of monetary circuits;
- Ideological reaction in accordance with BRICS alliance, which aims to push through regional economic sovereignty in the face of hegemony greenback.
This shift is clearly integrated into a strategic line supported by BRIC countries that have been calling for several years to reconfigurate the global monetary system.
The fact that these applications today address European firms compliance with regulations show that this ideology exceeds diplomatic manifestations. It begins to transform a specific practice of global payments.
Change preferred by technology and market conditions
If the geopolitical ideology of BRICS supports this dynamics, the technical sources that allow this are equally crucial.
Gene Ma, Chinese Director of Research at International Finance (IIF), identifies both main levers: “Increasing transactions between non -American currencies is mainly due to technological development and increasing liquidity”.
In other words, it is not just a dollar rejection that motivates actors, but also the growing perception that direct regulations between local currencies are technically viable, faster and not necessarily more expensive.
This trend illustrates the currency derivative. According to the reported information, there are also requests for derivative products covered against local currency fluctuations without using a dollar, a sharp rise.
These tools were previously little used outside the dollar circle, but the increase in endtech infrastructure and diversification of liquidity funds increases these strategies more accessible.
The inheritance of the trade tension between the United States and several regional blocks initiated by Donald Trump also also weighs the confidence of investors in the role of Greenback monetary beer. Although US tariff measures are now on the break, the climate of uncertainty persists.
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A graduate of the Toulouse and the Blockchain Consultant Certification certification holder and I joined the adventure of Cointribuna in 2019. I convinced of the potential of blockchain to transform many economy sectors, committing to raising awareness and informing the general public about how the ecosysty developed. My goal is to allow everyone to better understand blockchain and take the opportunity they offer. I try to provide an objective analysis of messages every day, decrypt trends on the market, hand over the latest technological innovations and introduce the economic and social issues of this revolution.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.